6:05 am December 7, 2009, by Henry Unger
Many consumers have been struggling with credit card debt in this economy.
So what do you think of a new proposal that would restrict instant credit at the cash register?
The Wall Street Journal is reporting that the proposed restrictions, if enacted by the Federal Reserve, would force retailers to gather more financial information from customers— including how much they earn— before giving them credit.
But some big retailers are balking at the proposals, which would make it a lot tougher for them to dole out instant credit at the cash register, the WSJ says.
That would endanger at least some popular cash-register pitches to “get 15% off today’s purchase” by opening a charge-card account on the spot, the WSJ reports.
Macy’s Inc., Saks Inc., Best Buy Co. and other retailers are fighting the proposed rules, claiming customers wouldn’t be comfortable handing over a pay stub or tax document to a cashier in order to show they can pay their bills.
“Instant credit is important because it is another service that we can offer the customer that the customer considers to be valuable,” Jim Sluzewski, a spokesman for Macy’s, told the WSJ.
But instant credit also can get consumers deeper into debt if they act impulsively. Consumer advocates have said the proposed rules are a long-overdue victory for Americans bombarded with easy credit at terms that can be onerous, WSJ reports.
Do you favor or oppose this latest proposal? Why?
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